Senator John Cornyn, the Senate Majority Whip, stated yesterday that the border adjustment tax, proposed by House Republicans, was likely dead. While the Trump administration’s guidelines regarding tax reform advocated for a switch to a territorial system, they did not specifically endorse a border adjustment mechanism. According to Senator Cornyn, enough Republican senators have expressed skepticism that its passage would be unlikely. Read more at: Senate’s No. 2 Republican: Border tax ‘probably...

The Trump administration released an outline of their tax reform plan today, which sets out the key initiatives they will pursue. Their proposals include lowering the corporate tax rate to 15%, repealing the 3.8% Affordable Care Act tax, implementing a territorial tax system, and introducing a transition repatriation tax on “trillions of dollars held overseas.” Read more at: Cohn, Mnuchin unveil Trump tax plan for 3 brackets and cutting deductions:...

President Trump announced that his tax reform plan will be released next week. He promised a “massive tax cut” to businesses and individuals that could end up larger “than any tax cut ever.” He did not provide any insight into the contents of the plan. Read more at: Trump says he will release tax reform package next week

Former Trump campaign advisors, Steve Forbes, Larry Kudlow, Arthur B. Laffer, and Stephen Moore, urged the Trump Administration and the Republican Party to not attempt to overhaul the entire tax code in one bill. Instead, they advocated first seeking to lower business rates, allow immediate expensing, impose a repatriation tax on overseas profits, and fund infrastructure projects. They also pushed for abandoning a revenue neutral bill as well as any border adjustment. Read more at: Why Are Republicans Making Tax Reform So...

The House Ways and Means Committee will conduct hearings on tax reform in the coming weeks, working toward the goal of passing tax reform by the end of the year. Rep. Peter Roskam (R-Ill.), Chairman of the Tax Policy Subcommittee, will select witnesses and draft the hearing topics, which will focus on elements of the House Republicans’ tax blueprint. Read more at: GOP chairman: Ways and Means to hold tax reform hearings soon

The Trump administration had previously stated that they wished to pass tax reform legislation by August of this year. However, Treasury Secretary Mnuchin has recently stated that the August deadline is too aggressive at this point and is not realistic. With legislative focus turning back to healthcare, it is unclear whether tax reform will be accomplished this year. Read more at: Tax reform by August unlikely, Mnuchin says ...

Dollar Tree, and similar discount retailers, rely on imports from countries like China that manufacture inexpensive products and sell at low prices. If the House Republicans impose the border adjustment tax, and imports are taxed at 20 percent, such discount retailers may have to revise their business models in order to maintain their profit margins and continue to be profitable. Read more at: Dollar Tree’s $1 Price Point May Slip Under Border Adjustment

U.S. House Speaker Paul Ryan’s tax reform blueprint is facing opposition within the Republican ranks. Both the Whitehouse and the Senate Republicans are preparing alternative plans, with the latter dusting off former House Ways and Means Committee Chairman Dave Camp’s proposed tax reform act as its foundation for new legislation. Read more at: U.S. Tax Reform Debate Moves Away From Ryan Blueprint

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